How does weather affect economy?

This question is an answer in itself. Weather, the most unpredictable natural phenomenon, can unfurl such powers so as to raze the basis of economies to basal points. Unfortunately, there aren’t many crisis management systems in tow at the time.

Seasons without proper rainfall, or those affected with flood or drought, are bound to affect agriculture. Thus, budget allocations do have to be on an extreme lenient phase for agro-industries for fear of revolt. Thence, the resultant pressure is soaked by other sectors and the economy takes a beating. Moreover, lots of countries are agro-based and a vacillating condition in that regime affects the economy altogether.

Common perception is that there is something wrong with economy if food prices go high. This is a cyclic process, and when as a result of a bad weather, things get expensive; the incumbent government comes under pressure. Economy, in that state, gets into an orphan-like stage.

comments

Leave a Reply